,ACCESS Test Bank for McGraw-
b b b b
Hill's Taxation of Individuals and Business Entities 2023 Edit
b b b b b b b b
ion 14th Edition Spilker
b b b
Instructor’sbManualb–bMcGraw-Hill’sbTaxation,bbybSpilkerbetbal.
Chapter 1 b
b An Introduction to Tax
b b b
INSTRUCTOR’S MANUAL b
Learning Objectives b
1-
1.b Demonstratebhowbtaxesbinfluencebbasicbbusiness,binvestment,bpersonal,bandbpoliticalbdecisions.b1-
2.b Discussbwhatbconstitutesbabtaxbandbthebgeneralbobjectivesbofbtaxation.
1-
3.b Describebthebdifferentbtaxbratebstructuresbandbcalculatebabtax.b1-
4.b Identifybthebvariousbfederal,bstate,bandblocalbtaxes.
1-5.b b Applybappropriatebcriteriabtobevaluatebalternatebtaxbsystems.
Teaching Suggestions b
Thisbchapterbprovidesbanboverviewbofbwhybtaxesbarebimportant,bwhatbabtaxbis,bhowbtobcalculatebabtax,bvariou
sbtaxbratesbandbtaxbratebstructures,bdifferentbtypesbofbfederal,bstate,bandblocalbtaxes,bandbhowbtobevaluatebabta
xbsystem.bOnebintentbofbthebchapterbisbtobgetbstudentsbthinkingbaboutbthebpervasivebinfluencebofbtaxesbandbth
usbwhybitbisbimportantbforbabbusinessborbaccountingbstudentbtobunderstandbtaxes.bDiscussingbhowbtaxesbaffec
tbdecisionsbthatbtheybwillbfaceb(buyingbabhouse,binvestingbforbretirement,betc.)bisbanbeffectivebwaybtobpiquebs
tudents’binterest.
Thisbchapterbalsobprovidesbanbopportunitybtobmotivatebstudentsbbybdiscussingbthebpoliticalbimportancebofbta
xesbandbthebdebateboverbalternativebtaxbsystems.bThroughoutbmostbofbthebchapter,byoubcanbtiebthebmaterialbdi
scussedbbackbtobthebdebateboverbalternativebtaxbsystems.bThisbisbeasilybdonebinbthebsectionbonbevaluatingbalte
rnativebtaxbsystemsbandbalternativebtaxbratebstructuresbbutbmaybalsobbebdonebforbotherbpartsbofbthebtext.bForbe
xample,bwhenbdiscussingbhowbtobcalculatebabtax,byoubcanbpointboutbthatboncebthebtaxbbasebisbcomputed,bitbisb
verybeasybtobcalculatebvirtuallybanybtax.bThebdifficultybisbinbdeterminingbthebtaxbbase.bThebimplicationbofbthi
sbunderstandingbisbthatbthebtaxbratebstructureb(e.g.,bprogressivebversusbproportional)bhasblittlebeffectbonbtaxbc
omplexity.
Inbteachingbthisbchapter,bthebtimebthatbyoubspendbinbclassbwillbvarybbasedbonbhowbmuchbdiscussionbthatbyoub
wantbtobincorporatebregardingbevaluatingbtaxbsystemsbandbimplicitbtaxes.bMostbofbthebconceptsbinbthisbchapte
rbarebrelativelybstraightforward,bandbthus,bthebchapterbprovidesbstudentsbwithbanbintroductionbtobtaxbwithoutb
overwhelmingbthembonbthebfirstbdayborbsobofbclass.bThisbisbparticularlybimportantbifbyourbstudentsbhavebsome
btrepidationbregardingbtheirbfirstbtaxbcourse.
Implicitbtaxbisbtypicallybabdifficultbconceptbforbstudentsbtobunderstand.bThebtextbprovidesbabgoodboverviewb
ofbimplicitbtax.bIfbyoubplanbtobcoverbimplicitbtaxbinbsomebdetail,byoubmightbalertbstudentsbthatbthisbisbabdiffic
ultbconceptbandbthatbtheybshouldbbebcarefulbtobgetbfamiliarbwithbthisbdiscussionbinbthebtextbpriorbtobclass.
©bMcGrawbHillbLLC.bAllbrightsbreserved.bNobreproductionborbdistributionbwithoutbthebpriorbwrittenbconsentbofbMcGrawbHillbLL
C.
1-1
mynursytest.store
,ACCESS Test Bank for McGraw-
b b b b
Hill's Taxation of Individuals and Business Entities 2023 Edit
b b b b b b b b
ion 14th Edition Spilker
b b b
Instructor’sbManualb–bMcGraw-Hill’sbTaxation,bbybSpilkerbetbal.
Assignment Matrix b
LearningbObjectives TextbFeatures
Research
Planning
Forms
LO1
LO2
LO3
LO4
LO5
Difficulty
DQ1-1 5bmin. Easy X
DQ1-2 5bmin. Easy X
DQ1-3 5bmin. Easy X
DQ1-4 5bmin. Easy X
DQ1-5 5bmin. Medium X
DQ1-6 5bmin. Medium X
DQ1-7 5bmin. Medium X
DQ1-8 10bmin. Medium X
DQ1-9 5bmin. Medium X
DQ1-10 10bmin. Medium X
DQ1-11 15bmin. Medium X
DQ1-12 5bmin. Medium X
DQ1-13 15bmin. Medium X
DQ1-14 10bmin. Medium X
DQ1-15 5bmin. Easy X
DQ1-16 15bmin. Medium X
DQ1-17 5bmin. Easy X
DQ1-18 5bmin. Easy X
DQ1-19 10bmin. Medium X
DQ1-20 10bmin. Medium X
DQ1-21 10bmin. Easy X
DQ1-22 10bmin. Easy X
DQ1-23 15bmin. Medium X
DQ1-24 15bmin. Medium X
DQ1-25 15bmin. Medium X
DQ1-26 15bmin. Medium X
DQ1-27 15bmin. Medium X
DQ1-28 15bmin. Medium X
DQ1-29 15bmin. Medium X X
DQ1-30 20bmin. Medium X X
DQ1-31 15bmin. Medium X X
DQ1-32 15bmin. Medium X
DQ1-33 15bmin. Medium X
P1-34 20bmin. Medium X
P1-35 20bmin. Medium X
P1-36 20bmin. Medium X
P1-37 20bmin. Medium X
P1-38 20bmin. Medium X
P1-39 20bmin. Medium X
P1-40 20bmin. Medium X
©bMcGrawbHillbLLC.bAllbrightsbreserved.bNobreproductionborbdistributionbwithoutbthebpriorbwrittenbconsentbofbMcGrawbHillbLL
C.
1-2
mynursytest.store
, ACCESS Test Bank for McGraw-
b b b b
Hill's Taxation of Individuals and Business Entities 2023 Edit
b b b b b b b b
ion 14th Edition Spilker b b b
Instructor’sbManualb–bMcGraw-Hill’sbTaxation,bbybSpilkerbetbal.
P1-41 20bmin. Medium X
P1-42 20bmin. Hard X X
P1-43 15bmin. Medium X X X
P1-44 15bmin. Medium X X X
P1-45 15bmin. Medium X X X
P1-46 15bmin. Medium X X X
P1-47 20bmin. Hard X
P1-48 20bmin. Hard X
P1-49 20bmin. Hard X X
P1-50 20bmin. Hard X X
P1-51 20bmin. Hard X
P1-52 20bmin. Hard X
P1-53 20bmin. Hard X
P1-54 20bmin. Hard X
P1-55 20bmin. Hard X
P1-56 20bmin. Hard X
P1-57 25bmin. Hard X X X
P1-58 25bmin. Hard X X X
P1-59 25bmin. Medium X X
P1-60 25bmin. Medium X X
Lecture Notes b
1) WhobCaresbAboutbTaxesbandbWhy?
a) Businesses
b) Politicians
c) Individuals
2) WhatbQualifiesbasbabTax?
a) Definitionbofbabtax
i) Keybcomponentsbofbdefinition:bpaymentbisbrequired,bimposedbbybabgovernmentbagency,bandb
notbdirectlybtiedbtobanybbenefitbreceivedbbybthebtaxpayerbfrombthebgovernment
b) Earmarkedbtax—definitionbandbwhybthisbisbconsideredbabtax
c) QuizbstudentsbonbtaxbdefinitionbusingbexamplesbinbthebPowerPointbslides.
3) HowbtobCalculatebabTax
a) Taxb=bTaxbBaseb×bTaxbRate
i) TaxbBase—whatbisbactuallybtaxed,busuallybexpressedbinbmonetarybterms
ii) TaxbRate—levelbofbtaxesbimposedbonbthebtaxbbase,busuallybexpressedbasbabpercentage
iii) Flatbtaxes
iv) Graduatedbtaxes
v) Brackets
b) Differentbwaysbtobmeasurebtaxbrates
i) Marginalbtaxbrate
(1) Definition—
taxbratebthatbappliesbtobthebnextbadditionalbincrementbofbabtaxpayer’sbtaxablebincomeb(orbd
eductions)
©bMcGrawbHillbLLC.bAllbrightsbreserved.bNobreproductionborbdistributionbwithoutbthebpriorbwrittenbconsentbofbMcGrawbHillbLL
C.
1-3
mynursytest.store
b b b b
Hill's Taxation of Individuals and Business Entities 2023 Edit
b b b b b b b b
ion 14th Edition Spilker
b b b
Instructor’sbManualb–bMcGraw-Hill’sbTaxation,bbybSpilkerbetbal.
Chapter 1 b
b An Introduction to Tax
b b b
INSTRUCTOR’S MANUAL b
Learning Objectives b
1-
1.b Demonstratebhowbtaxesbinfluencebbasicbbusiness,binvestment,bpersonal,bandbpoliticalbdecisions.b1-
2.b Discussbwhatbconstitutesbabtaxbandbthebgeneralbobjectivesbofbtaxation.
1-
3.b Describebthebdifferentbtaxbratebstructuresbandbcalculatebabtax.b1-
4.b Identifybthebvariousbfederal,bstate,bandblocalbtaxes.
1-5.b b Applybappropriatebcriteriabtobevaluatebalternatebtaxbsystems.
Teaching Suggestions b
Thisbchapterbprovidesbanboverviewbofbwhybtaxesbarebimportant,bwhatbabtaxbis,bhowbtobcalculatebabtax,bvariou
sbtaxbratesbandbtaxbratebstructures,bdifferentbtypesbofbfederal,bstate,bandblocalbtaxes,bandbhowbtobevaluatebabta
xbsystem.bOnebintentbofbthebchapterbisbtobgetbstudentsbthinkingbaboutbthebpervasivebinfluencebofbtaxesbandbth
usbwhybitbisbimportantbforbabbusinessborbaccountingbstudentbtobunderstandbtaxes.bDiscussingbhowbtaxesbaffec
tbdecisionsbthatbtheybwillbfaceb(buyingbabhouse,binvestingbforbretirement,betc.)bisbanbeffectivebwaybtobpiquebs
tudents’binterest.
Thisbchapterbalsobprovidesbanbopportunitybtobmotivatebstudentsbbybdiscussingbthebpoliticalbimportancebofbta
xesbandbthebdebateboverbalternativebtaxbsystems.bThroughoutbmostbofbthebchapter,byoubcanbtiebthebmaterialbdi
scussedbbackbtobthebdebateboverbalternativebtaxbsystems.bThisbisbeasilybdonebinbthebsectionbonbevaluatingbalte
rnativebtaxbsystemsbandbalternativebtaxbratebstructuresbbutbmaybalsobbebdonebforbotherbpartsbofbthebtext.bForbe
xample,bwhenbdiscussingbhowbtobcalculatebabtax,byoubcanbpointboutbthatboncebthebtaxbbasebisbcomputed,bitbisb
verybeasybtobcalculatebvirtuallybanybtax.bThebdifficultybisbinbdeterminingbthebtaxbbase.bThebimplicationbofbthi
sbunderstandingbisbthatbthebtaxbratebstructureb(e.g.,bprogressivebversusbproportional)bhasblittlebeffectbonbtaxbc
omplexity.
Inbteachingbthisbchapter,bthebtimebthatbyoubspendbinbclassbwillbvarybbasedbonbhowbmuchbdiscussionbthatbyoub
wantbtobincorporatebregardingbevaluatingbtaxbsystemsbandbimplicitbtaxes.bMostbofbthebconceptsbinbthisbchapte
rbarebrelativelybstraightforward,bandbthus,bthebchapterbprovidesbstudentsbwithbanbintroductionbtobtaxbwithoutb
overwhelmingbthembonbthebfirstbdayborbsobofbclass.bThisbisbparticularlybimportantbifbyourbstudentsbhavebsome
btrepidationbregardingbtheirbfirstbtaxbcourse.
Implicitbtaxbisbtypicallybabdifficultbconceptbforbstudentsbtobunderstand.bThebtextbprovidesbabgoodboverviewb
ofbimplicitbtax.bIfbyoubplanbtobcoverbimplicitbtaxbinbsomebdetail,byoubmightbalertbstudentsbthatbthisbisbabdiffic
ultbconceptbandbthatbtheybshouldbbebcarefulbtobgetbfamiliarbwithbthisbdiscussionbinbthebtextbpriorbtobclass.
©bMcGrawbHillbLLC.bAllbrightsbreserved.bNobreproductionborbdistributionbwithoutbthebpriorbwrittenbconsentbofbMcGrawbHillbLL
C.
1-1
mynursytest.store
,ACCESS Test Bank for McGraw-
b b b b
Hill's Taxation of Individuals and Business Entities 2023 Edit
b b b b b b b b
ion 14th Edition Spilker
b b b
Instructor’sbManualb–bMcGraw-Hill’sbTaxation,bbybSpilkerbetbal.
Assignment Matrix b
LearningbObjectives TextbFeatures
Research
Planning
Forms
LO1
LO2
LO3
LO4
LO5
Difficulty
DQ1-1 5bmin. Easy X
DQ1-2 5bmin. Easy X
DQ1-3 5bmin. Easy X
DQ1-4 5bmin. Easy X
DQ1-5 5bmin. Medium X
DQ1-6 5bmin. Medium X
DQ1-7 5bmin. Medium X
DQ1-8 10bmin. Medium X
DQ1-9 5bmin. Medium X
DQ1-10 10bmin. Medium X
DQ1-11 15bmin. Medium X
DQ1-12 5bmin. Medium X
DQ1-13 15bmin. Medium X
DQ1-14 10bmin. Medium X
DQ1-15 5bmin. Easy X
DQ1-16 15bmin. Medium X
DQ1-17 5bmin. Easy X
DQ1-18 5bmin. Easy X
DQ1-19 10bmin. Medium X
DQ1-20 10bmin. Medium X
DQ1-21 10bmin. Easy X
DQ1-22 10bmin. Easy X
DQ1-23 15bmin. Medium X
DQ1-24 15bmin. Medium X
DQ1-25 15bmin. Medium X
DQ1-26 15bmin. Medium X
DQ1-27 15bmin. Medium X
DQ1-28 15bmin. Medium X
DQ1-29 15bmin. Medium X X
DQ1-30 20bmin. Medium X X
DQ1-31 15bmin. Medium X X
DQ1-32 15bmin. Medium X
DQ1-33 15bmin. Medium X
P1-34 20bmin. Medium X
P1-35 20bmin. Medium X
P1-36 20bmin. Medium X
P1-37 20bmin. Medium X
P1-38 20bmin. Medium X
P1-39 20bmin. Medium X
P1-40 20bmin. Medium X
©bMcGrawbHillbLLC.bAllbrightsbreserved.bNobreproductionborbdistributionbwithoutbthebpriorbwrittenbconsentbofbMcGrawbHillbLL
C.
1-2
mynursytest.store
, ACCESS Test Bank for McGraw-
b b b b
Hill's Taxation of Individuals and Business Entities 2023 Edit
b b b b b b b b
ion 14th Edition Spilker b b b
Instructor’sbManualb–bMcGraw-Hill’sbTaxation,bbybSpilkerbetbal.
P1-41 20bmin. Medium X
P1-42 20bmin. Hard X X
P1-43 15bmin. Medium X X X
P1-44 15bmin. Medium X X X
P1-45 15bmin. Medium X X X
P1-46 15bmin. Medium X X X
P1-47 20bmin. Hard X
P1-48 20bmin. Hard X
P1-49 20bmin. Hard X X
P1-50 20bmin. Hard X X
P1-51 20bmin. Hard X
P1-52 20bmin. Hard X
P1-53 20bmin. Hard X
P1-54 20bmin. Hard X
P1-55 20bmin. Hard X
P1-56 20bmin. Hard X
P1-57 25bmin. Hard X X X
P1-58 25bmin. Hard X X X
P1-59 25bmin. Medium X X
P1-60 25bmin. Medium X X
Lecture Notes b
1) WhobCaresbAboutbTaxesbandbWhy?
a) Businesses
b) Politicians
c) Individuals
2) WhatbQualifiesbasbabTax?
a) Definitionbofbabtax
i) Keybcomponentsbofbdefinition:bpaymentbisbrequired,bimposedbbybabgovernmentbagency,bandb
notbdirectlybtiedbtobanybbenefitbreceivedbbybthebtaxpayerbfrombthebgovernment
b) Earmarkedbtax—definitionbandbwhybthisbisbconsideredbabtax
c) QuizbstudentsbonbtaxbdefinitionbusingbexamplesbinbthebPowerPointbslides.
3) HowbtobCalculatebabTax
a) Taxb=bTaxbBaseb×bTaxbRate
i) TaxbBase—whatbisbactuallybtaxed,busuallybexpressedbinbmonetarybterms
ii) TaxbRate—levelbofbtaxesbimposedbonbthebtaxbbase,busuallybexpressedbasbabpercentage
iii) Flatbtaxes
iv) Graduatedbtaxes
v) Brackets
b) Differentbwaysbtobmeasurebtaxbrates
i) Marginalbtaxbrate
(1) Definition—
taxbratebthatbappliesbtobthebnextbadditionalbincrementbofbabtaxpayer’sbtaxablebincomeb(orbd
eductions)
©bMcGrawbHillbLLC.bAllbrightsbreserved.bNobreproductionborbdistributionbwithoutbthebpriorbwrittenbconsentbofbMcGrawbHillbLL
C.
1-3
mynursytest.store
